Angel Oak Mortgage, Inc. (AOMR) Bundle
A Brief History of Angel Oak Mortgage REIT, Inc.
Company Overview
Angel Oak Mortgage REIT, Inc. specializes in investing in and managing a portfolio of residential mortgage loans and mortgage-backed securities. As of 2024, the company continues to focus on non-qualified mortgage (non-QM) loans, which have become increasingly relevant in the current market environment.
Recent Financial Performance
For the nine months ended September 30, 2024, Angel Oak reported the following financial metrics:
| Metric | 2024 | 2023 |
|---|---|---|
| Interest Income | $78.6 million | $71.4 million |
| Interest Expense | $51.5 million | $50.7 million |
| Net Interest Income | $27.1 million | $20.7 million |
| Net Income Allocable to Common Stockholders | $43.8 million | $5.1 million |
| Total Comprehensive Income | $48.3 million | $18.1 million |
Stockholder Equity and Book Value
As of September 30, 2024, the total stockholders’ equity was reported at $265.1 million. The book value per share of common stock was calculated to be $11.28, up from $10.26 at the end of 2023. This increase reflects the company's robust financial performance and strategic asset management.
Securitization Activities
In 2024, Angel Oak engaged in multiple securitization transactions. Notably, the AOMT 2024-10 securitization issued approximately $316.8 million backed by residential mortgage loans. This transaction was part of a series of securitizations that have allowed the company to manage its funding structure effectively.
Recent Notes Offering
On July 25, 2024, Angel Oak closed a public offering of $50 million in aggregate principal amount of its 9.500% Senior Notes due 2029. The proceeds from this offering are primarily utilized for general corporate purposes, including the acquisition of non-QM loans.
Operational Metrics
The following operational metrics were reported for the nine months ended September 30, 2024:
| Metric | Value |
|---|---|
| Weighted Average Coupon of Residential Whole Loans | 7.73% |
| Weighted Average Loan-to-Value Ratio (LTV) | 70.0% |
| Weighted Average Credit Score | 754 |
| Current 3-Month Constant Prepayment Rate (CPR) | 7.8% |
| Percentage of Loans 90+ Days Delinquent | 1.9% |
Market Position and Strategy
Angel Oak has positioned itself strategically in the mortgage market by focusing on non-QM loans, which are less impacted by stringent regulatory requirements compared to traditional loans. This strategy has allowed the company to capitalize on the growing demand for alternative mortgage solutions.
Conclusion of Financial Operations
As of September 30, 2024, Angel Oak continues to demonstrate strong operational performance and strategic growth in a competitive mortgage market. The company's focus on non-QM loans and successful securitization efforts reflect its commitment to adapting to market dynamics.
A Who Owns Angel Oak Mortgage, Inc. (AOMR)
Ownership Structure
As of 2024, Angel Oak Mortgage, Inc. (AOMR) operates as a publicly traded real estate investment trust (REIT) focused on investing in non-qualified mortgage loans. The ownership structure includes institutional investors, retail investors, and company insiders.
Major Shareholders
The following table presents the major shareholders of Angel Oak Mortgage, Inc. as of 2024:
| Shareholder Type | Ownership Percentage (%) | Number of Shares Owned | Notes |
|---|---|---|---|
| Institutional Investors | 45.2% | 10,636,000 | Includes large investment firms and mutual funds |
| Insider Ownership | 5.5% | 1,290,000 | Includes executives and board members |
| Retail Investors | 49.3% | 11,674,272 | Public shareholders |
Stock Performance
AOMR's stock has shown notable fluctuations in 2024. As of September 30, 2024, the stock price was $11.00, reflecting a year-to-date increase of 15% from the beginning of the year. The company reported a market capitalization of approximately $259 million.
Financial Overview
The following table summarizes key financial metrics for AOMR as of September 30, 2024:
| Financial Metric | Value |
|---|---|
| Total Assets | $2.3 billion |
| Total Liabilities | $2.0 billion |
| Stockholders' Equity | $265.1 million |
| Net Income (Q3 2024) | $31.2 million |
| Earnings per Share (EPS) | $1.31 |
Recent Developments
In 2024, Angel Oak Mortgage has engaged in several securitization transactions, including:
- AOMT 2024-3: $439.6 million in face value of bonds issued.
- AOMT 2024-4: $299.8 million in face value of bonds issued.
- AOMT 2024-10: $316.8 million in face value of bonds issued.
Dividend Information
As part of its distribution policy, AOMR declared dividends totaling $23.5 million in 2024, with a dividend yield of approximately 8.5% based on the current stock price.
Conclusion
The ownership structure of Angel Oak Mortgage, Inc. is characterized by a mix of institutional and retail investors, with significant involvement from company insiders. The company's recent financial performance and strategic moves in the securitization market reflect its ongoing commitment to growth and shareholder value.
Angel Oak Mortgage, Inc. (AOMR) Mission Statement
Mission Statement Overview
The mission of Angel Oak Mortgage, Inc. (AOMR) emphasizes providing innovative financing solutions while maintaining a commitment to responsible lending practices. The company aims to enhance the home financing experience by offering non-QM (Qualified Mortgage) loans that cater to a diverse range of borrowers.
Core Values
- Integrity: Upholding ethical standards in all business operations.
- Customer Focus: Prioritizing the needs and satisfaction of clients.
- Innovation: Continuously developing new products to meet market demands.
- Collaboration: Working closely with partners to enhance service delivery.
Financial Performance
As of September 30, 2024, Angel Oak Mortgage reported significant financial metrics demonstrating its operational effectiveness:
| Metric | Value |
|---|---|
| Net Income (Loss) Allocable to Common Stockholders | $31,204,000 |
| Basic Earnings per Common Share | $1.31 |
| Diluted Earnings per Common Share | $1.29 |
| Total Stockholders' Equity | $265,098,000 |
| Total Assets | $2,303,866,000 |
| Total Liabilities | $2,038,768,000 |
| Net Interest Income | $9,020,000 |
| Interest Expense | $18,424,000 |
| Interest Income | $27,444,000 |
Loan Portfolio Characteristics
As of September 30, 2024, the characteristics of the residential mortgage loans in Angel Oak's portfolio are as follows:
| Characteristic | Value |
|---|---|
| Unpaid Principal Balance (UPB) | $1,512,722,000 |
| Fair Value | $1,452,907,000 |
| Number of Loans | 3,594 |
| Weighted Average Loan Coupon | 5.12% |
| Average Loan Amount | $422,000 |
| Weighted Average Loan-to-Value (LTV) | 67.0% |
| Weighted Average Credit Score | 741 |
Securitization Activities
Angel Oak actively engages in securitization activities, contributing to its financial strength and stability. In 2024, the company participated in several securitizations:
- AOMT 2024-3: Approximately $439.6 million scheduled unpaid principal balance.
- AOMT 2024-4: Approximately $299.8 million scheduled unpaid principal balance.
- AOMT 2024-6: Approximately $479.6 million scheduled unpaid principal balance.
- AOMT 2024-10: Approximately $316.8 million scheduled unpaid principal balance.
Recent Developments
In July 2024, Angel Oak issued $50 million in aggregate principal amount of 9.500% Senior Notes due 2029. The notes are fully guaranteed on a senior unsecured basis and are set to mature on July 30, 2029.
As of September 30, 2024, the company maintained a borrowing capacity of $1.1 billion, allowing for strategic financing opportunities.
Market Position
Angel Oak Mortgage positions itself in the non-QM lending market, catering to borrowers who may not fit traditional lending criteria. The company's focus on innovation and customer service aims to capture a growing segment of the mortgage market.
How Angel Oak Mortgage, Inc. (AOMR) Works
Company Overview
Angel Oak Mortgage, Inc. (AOMR) operates primarily in the mortgage finance sector, focusing on non-qualified mortgage (non-QM) loans. The company engages in the acquisition, financing, and securitization of residential mortgage loans, particularly targeting borrowers who do not fit traditional lending criteria.
Financial Performance
As of September 30, 2024, AOMR reported a net income allocable to common stockholders of $31.2 million for the third quarter, compared to $8.3 million in the same quarter of 2023. The basic earnings per share increased to $1.31 from $0.33 year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (Allocable to Common Stockholders) | $31.2 million | $8.3 million |
| Basic Earnings per Share | $1.31 | $0.33 |
| Total Comprehensive Income | $33.9 million | $6.7 million |
Balance Sheet Highlights
As of September 30, 2024, the total assets of AOMR were $2.3 billion, with total liabilities amounting to $2.0 billion. The company's stockholders' equity stood at $265.1 million.
| Balance Sheet Item | Amount |
|---|---|
| Total Assets | $2.3 billion |
| Total Liabilities | $2.0 billion |
| Stockholders' Equity | $265.1 million |
Investment Portfolio
AOMR's investment portfolio as of September 30, 2024, consists of approximately $2.2 billion in residential mortgage loans, RMBS, and other target assets. The company has a significant focus on non-QM loans, which accounted for a substantial portion of its assets.
Securitization Activities
During the third quarter of 2024, AOMR participated in several securitization transactions:
- In March 2024, AOMR contributed loans to a securitization with a scheduled unpaid principal balance of approximately $439.6 million.
- In April 2024, AOMR issued a securitization of approximately $299.8 million.
- In June 2024, AOMR participated in a securitization with a scheduled unpaid principal balance of approximately $479.6 million.
- In October 2024, AOMR issued another securitization of approximately $316.8 million.
Loan Performance Metrics
The company's portfolio metrics as of September 30, 2024, indicate the following:
| Metric | Value |
|---|---|
| Weighted Average Coupon (WAC) of Loans | 7.74% |
| Weighted Average Loan-to-Value (LTV) | 70.0% |
| Weighted Average Credit Score | 754 |
| 90+ Day Delinquency Rate | 8.1% |
Operational Expenses
For the nine months ended September 30, 2024, AOMR reported total operating expenses of $4.6 million, a decrease from $5.8 million in the same period of 2023. The management fees incurred with affiliates were $3.8 million for the same period.
| Expense Category | 2024 Amount | 2023 Amount |
|---|---|---|
| Total Operating Expenses | $4.6 million | $5.8 million |
| Management Fees Incurred with Affiliates | $3.8 million | $4.5 million |
Cash Flow Analysis
For the nine months ended September 30, 2024, AOMR's cash flows from operating activities were impacted by a net income of $43.8 million, with significant changes in working capital influencing cash position.
| Cash Flow Item | Amount |
|---|---|
| Net Income | $43.8 million |
| Purchases of Residential Mortgage Loans | $182.2 million |
| Repayment of Non-Recourse Securitization Obligation | $122.1 million |
How Angel Oak Mortgage, Inc. (AOMR) Makes Money
Revenue Streams
Angel Oak Mortgage, Inc. (AOMR) primarily generates revenue through its investments in residential mortgage loans and mortgage-backed securities (MBS). The company engages in securitization activities, allowing it to pool loans and issue securities backed by these loans.
Interest Income
As of September 30, 2024, AOMR reported interest income of $27,444,000 compared to $23,900,000 for the same period in 2023. The net interest income for the third quarter of 2024 was $9,020,000, up from $7,410,000 in Q3 2023. This increase reflects the growth in both the balance and yield of their target assets.
| Period | Interest Income | Interest Expense | Net Interest Income |
|---|---|---|---|
| Q3 2024 | $27,444,000 | $18,424,000 | $9,020,000 |
| Q3 2023 | $23,900,000 | $16,490,000 | $7,410,000 |
Securitization Activities
AOMR engages in securitization transactions, which involve pooling residential mortgage loans and issuing securities backed by these loans. In October 2024, AOMR completed a securitization transaction (AOMT 2024-10) with an unpaid principal balance of approximately $316.8 million.
In 2024, AOMR participated in various securitizations, including:
- AOMT 2024-3: Approximately $439.6 million
- AOMT 2024-4: Approximately $299.8 million
- AOMT 2024-6: Approximately $479.6 million
Realized and Unrealized Gains
AOMR also earns revenue through realized and unrealized gains on its investments. For the three months ended September 30, 2024, the company reported:
- Net realized loss on mortgage loans and derivatives: ($6,335,000)
- Net unrealized gain: $35,172,000
The total realized and unrealized gains amounted to $28,837,000 for Q3 2024.
| Period | Net Realized Gains/Losses | Net Unrealized Gains | Total Gains |
|---|---|---|---|
| Q3 2024 | ($6,335,000) | $35,172,000 | $28,837,000 |
| Q3 2023 | ($12,044,000) | $17,299,000 | $5,255,000 |
Operating Expenses
For the nine months ended September 30, 2024, AOMR's total operating expenses were $13,983,000, down from $15,577,000 in the same period of 2023. This decline indicates improved operational efficiency.
Cash Flow and Financing Activities
AOMR reported net cash provided by financing activities of $274,793,000 for the nine months ended September 30, 2024. The company continues to utilize short-term repurchase facilities to finance its RMBS portfolio.
| Activity Type | Amount (in thousands) |
|---|---|
| Proceeds from Securitization | $274,793 |
| Dividends Paid | ($23,514) |
| Repurchase of Common Stock | ($19,950) |
Equity and Book Value
As of September 30, 2024, AOMR had total stockholders' equity of $265,098,000 with a book value per share of $11.28. This reflects a slight increase from $256,106,000 and $10.26 per share as of December 31, 2023.
| Date | Total Stockholders’ Equity | Book Value per Share |
|---|---|---|
| September 30, 2024 | $265,098,000 | $11.28 |
| December 31, 2023 | $256,106,000 | $10.26 |
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Updated on 16 Nov 2024
Resources:
- Angel Oak Mortgage, Inc. (AOMR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Angel Oak Mortgage, Inc. (AOMR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Angel Oak Mortgage, Inc. (AOMR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.